TitoPuente
Member of DD Central
Posts: 624
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Post by TitoPuente on Jan 29, 2021 13:36:46 GMT
When this went into administration, our good friends from Moo***ds "advised" that selling the asset in an unfinished condition would result in a significant loss vs. finishing the build out and achieving a full price. Then the infamous pipe sabotage was uncovered and all went downhill from there. It would have been better to sell the asset immediately and suffer a 50% loss than the current picture which seems to indicate a more than 50% loss and two years opportunity cost. The lesson is never follow the advice from a advisor with a vested interest and perverse incentives.
In any case, the reason given for the administration to be extended is the 3-year "rent guarantee" that is offered with the unit sales. It was never explained why units are still being sold with a rent guarantee which is expensive and keeps the administrator in the asset.
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jlend
Member of DD Central
Posts: 1,832
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Post by jlend on Jan 30, 2021 16:55:15 GMT
When this went into administration, our good friends from Moo***ds "advised" that selling the asset in an unfinished condition would result in a significant loss vs. finishing the build out and achieving a full price. Then the infamous pipe sabotage was uncovered and all went downhill from there. It would have been better to sell the asset immediately and suffer a 50% loss than the current picture which seems to indicate a more than 50% loss and two years opportunity cost. The lesson is never follow the advice from a advisor with a vested interest and perverse incentives. In any case, the reason given for the administration to be extended is the 3-year "rent guarantee" that is offered with the unit sales. It was never explained why units are still being sold with a rent guarantee which is expensive and keeps the administrator in the asset. Worst case there will be no payout to lenders until 3 years after the final unit is sold and the administrator can finalise the costs for the rent guarantee.
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easynow
Member of DD Central
Popcorn anyone?
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Post by easynow on Jan 30, 2021 22:27:56 GMT
I did some rough calcs last February, and at the time there was nothing left for borrowers from the money accumulated to date, and rent guarantees were going to cost lenders around £128k, it didn't paint a very rosey picture at the time.
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jlend
Member of DD Central
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Post by jlend on Feb 9, 2021 15:06:28 GMT
Do we know how many of the units are still left to sell?
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Post by queenvictoria on Feb 11, 2021 16:55:23 GMT
Do we know how many of the units are still left to sell? I emailed MT on 1st Feb to ask this question and received a response from Ed a couple of days later as follows: "As per the updates, there are still 4 units remaining to be sold. Marketing of the remaining units (and the freehold), will re-commence when appropriate."The reason for my email was that the updates were not really very clear (19/05/2020. A further two units have now been sold, leaving 6 remaining. 06/08/2020 A further 2 units are due to complete shortly. 01/02/2021. There has been no further progress on sales and there is nothing further to report at this time.) but at least the email response was. There are 4 units and the freehold remaining to be sold.
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jlend
Member of DD Central
Posts: 1,832
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Post by jlend on Feb 11, 2021 17:05:03 GMT
Do we know how many of the units are still left to sell? I emailed MT on 1st Feb to ask this question and received a response from Ed a couple of days later as follows: "As per the updates, there are still 4 units remaining to be sold. Marketing of the remaining units (and the freehold), will re-commence when appropriate."The reason for my email was that the updates were not really very clear (19/05/2020. A further two units have now been sold, leaving 6 remaining. 06/08/2020 A further 2 units are due to complete shortly. 01/02/2021. There has been no further progress on sales and there is nothing further to report at this time.) but at least the email response was. There are 4 units and the freehold remaining to be sold.Thanks I assume there is no point trying to market and sell the remaining 4 units due to the rent guarantee and the uncertainty of students going back.
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Post by Please turn me over on Mar 15, 2021 22:17:14 GMT
Been polishing my crystal ball again. I'm anticipating that the sixth Administrators' report will say: - to date, fees of £100,000 have been drawn by the Administration;
- the anticipated distribution/dividend to the Secured creditor is uncertain; and
- the Administration has been extended until 22 February 2022.
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ptr120
Member of DD Central
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Post by ptr120 on May 7, 2021 21:18:51 GMT
The end date of this loan has been pushed out by 12 months without any comment or admin note. While not unexpected ( MoneyThing have form for that) I'd have expected better of the administrators. The last meaningful update to this loan is now more than 12 months old. As a reminder, this loan has now been in administration for more than 3 years.
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GeorgeT
Member of DD Central
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Post by GeorgeT on Jul 9, 2021 20:42:24 GMT
The freehold interest is up for sale by auction later this month. I've put details in DD central.
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qlassa
Member of DD Central
Posts: 57
Likes: 25
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Post by qlassa on Jul 28, 2021 22:18:31 GMT
The freehold interest is up for sale by auction later this month. I've put details in DD central. Thanks for flagging, trying to get access to DD Central to get more color. Can you share the link where you got the info originally? thanks
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johni
Member of DD Central
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Post by johni on Jul 29, 2021 21:21:04 GMT
Now sold
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mah
Member of DD Central
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Post by mah on Aug 2, 2021 16:30:34 GMT
Still No updates on the Loan Page - last update on 01/02/21.
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huxs
Member of DD Central
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Post by huxs on Aug 3, 2021 7:26:56 GMT
Still No updates on the Loan Page - last update on 01/02/21. I am sure when the update does come, we will have been charged a hefty sum from the Administrators for it
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qlassa
Member of DD Central
Posts: 57
Likes: 25
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Post by qlassa on Aug 7, 2021 22:54:42 GMT
Still No updates on the Loan Page - last update on 01/02/21. I am sure when the update does come, we will have been charged a hefty sum from the Administrators for it Undoubted
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qlassa
Member of DD Central
Posts: 57
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Post by qlassa on Aug 10, 2021 19:02:16 GMT
After 6 months silence, finally another update and at least all units and freehold sold. At least something to expect, even peanut, still better than lendy and collateral where there is no clarity at all
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